dental practice Archives - Smile Influencers https://www.smileinfluencers.com/tag/dental-practice/ A Dental Community for Dentists Fri, 20 Mar 2020 20:43:22 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 Dental Practice Location for Start Ups – 7 Critical Components https://www.smileinfluencers.com/dental-practice/startup-location/ Thu, 19 Mar 2020 23:58:04 +0000 https://www.smileinfluencers.com/?p=9060 Deciding on the location of your dental practice, whether a start-up or moving an existing practice, can greatly affect the long-term success of the office. While some may choose location based on where they want to live or raise kids, etc, there are many other important factors that need to be considered. Below are 7 factors that...

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Deciding on the location of your dental practice, whether a start-up or moving an existing practice, can greatly affect the long-term success of the office. 

While some may choose location based on where they want to live or raise kids, etc, there are many other important factors that need to be considered. 

Below are 7 factors that should be considered when choosing a practice location.

Lets jump right in . . . 

Table of Contents

#1 Dental Practice Demographics

Population

  • You want the population:doctor to be as large as possible
  • Minimum population:doctor of 2,000:
  • Thus, it's ideal to have an area with a minimum of 2,000 people

Population Change

  • Anticipated change in population growth over the next 1, 5, and 10 years
  • You don't want a shrinking population

Income

  • A population with more income is better for start-up
  • This also depends on the type of population your practice is geared to; if your practice is mostly cosmetic work, want a population with disposable income

Mass Transit

  • While this may not be an important factor in all areas, mass transmit can allow patients to more easily get to your office and can mean patients are less likely to move from the area since they have options to commute for work.

Average Age

  • 35-50 age range typically have higher or more stable income, likely settled/tied to community, more likely to have children, long-term patient relationship potential

Owners vs Renters

  • Home owners are less likely to move
  • Renters are more likely to move and/or leave the area/practice in the future 

Employment Rate 

  • Higher employment rate means income potential
  • More stable population/patients that are less likely to leave

Number of existing dentists

  • Too few could be a bad sign
  • Too many could mean increased competition for new patients 

Dental Non-Compete Contracts

If you signed a non-compete contract this could affect the location you choose for your practice. Non-compete contacts typically have a certain mile radius that you are allowed to practice for a certain number of years, after leaving a practice.

While non-compete clauses are not legal in all states, be sure you know the laws in your state and be mindful when signing contracts as an associate. 

Ashley & I have shared some of our personal contract negotiations in our personal facebook group Dental Start Up Tips (Click Here)

Competitive Dental Offices 

Typically start-ups market more aggressively than existing practices

  • If multiple new start-ups in same area, increased competition for new patients
  • Town hall holds records of public information of projects that have been applied for and approved

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Acquisition Opportunities

  • Look into age of existing dentists in community
  • If dentists going to be retiring in the near future, this gives you opportunity to acquire their patients/records

Cost of Construction + Tax Rates 

  • Differences in fees, taxes, and union effects on prices differ in each city
  • This could cost you tens of thousands of dollars
  • Local tax rates: depending on the area, some charge a flat percentage on gross receipts, others on personal income, 

Insurance Reimbursement Rates

  • Affected by area
  • If you’re accepting insurance wants to make sure rates are good for the area compared to neighboring cities/sites  

Landmarks

  • Helps patients locate your practice
  • People like going to familiar places
  • Practice perceived to be more embedded in the community
  • Easier for people to see office/signage 

Join the Dental Start Up Facebook Group

 THE FACEBOOK GROUP LINK
That's it! 
I hope this information helps you choose a practice location for your future dental office. I write this amidst the COVID-19 Pandemic & I hope this global economic uncertainty does not deter you from making your dreams a reality. Stay safe & be well.
Full disclosure: I receive a commission if you purchase the dental products through my referral links. This helps me run this blog & I appreciate the support. 


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